• SustainCo (SMS) has revealed plans to conduct a non-brokered private placement, for up to C$500,000 in gross proceeds
  • Through the placement, the company will sell up to 2.5 million units, at a price of $0.20 each
  • Each unit in SustainCo will contain one common share in the company, and half of a common share purchase warrant
  • The company will use the proceeds to establish new business lines and for general working capital purposes
  • SustainCo is down 3.85 per cent and is currently trading for $0.25 per share

SustainCo (SMS) has revealed plans to conduct a non-brokered private placement, for up to C$500,000 in gross proceeds.

The placement will consist of the sale of up to 2.5 million units in the company, at a price of $0.20 each. Each unit in SustainCo will contain one common share in the company, and half of a common share purchase warrant.

One whole warrant will allow the holder to buy one additional common share in the company, at a price of $0.30. Warrants issued through the placement will be exercisable into shares for the three years following the date of issuance.

The units will be offered in each province of Canada, pursuant to available prospectus exemptions. All securities which are issued through the offering will be subject to a hold period of four months and one day, from the date of issuance. 

SustainCo has engaged Foundation Markets as its exclusive finder for the private placement. The company has agreed to pay Foundation Markets a cash commission equal to eight per cent of the offering proceeds introduced by the finder.

Additionally, SustainCo has agreed to issue compensation options to Foundation Markets, equal to eight per cent of units sold to subscribers introduced by the finder. Each compensation option will allow the holder to buy an extra unit for $0.20, within three years of the date of issuance.

SustainCo, which invests in sustainability infrastructure, will primarily use the proceeds of the offering to establish new business lines. Depending on how much is raised, some funds may also go towards the company’s general working capital purposes.

SustainCo is down 3.85 per cent and is trading for $0.25 per share, as of 9:30am EST.

More From The Market Herald

Top solar stock acquires two New York solar projects

SolarBank (CSE:SUNN) has acquired a 100 per cent interest in the US1 Project and VC1 Project, each located in New York.

Top solar stock details foundation for future growth

SolarBank (CSE:SUNN), a top-performing solar energy stock, is charting a course to continue its growth and market-beating returns.

Renewable energy stock achieves first profitable quarter

Solar Alliance Energy (TSXV:SOLR), an underpriced renewable energy stock, has completed its first profitable quarter.